Free tools Windows power users keep installed
One-click scans. No signup required.
Amir Golestan, the former CEO of Charleston-based cloud company Micfo LLC, was ultimately convicted in the IPv4 address fraud case first reported by CyberScoop in 2019. Golestan and Micfo pleaded guilty in November 2021 to all 20 wire-fraud counts, and Golestan was sentenced in September 2023 to 60 months in federal prison, followed by two years of supervision, plus $76,978.25 in restitution to the American Registry for Internet Numbers (ARIN).
What was the Micfo IP-address fraud case?
The case concerned the alleged and later admitted use of fictitious intermediary companies to obtain rights to IPv4 addresses from ARIN. IPv4 addresses are numerical identifiers assigned to devices and networks connected to the internet. ARIN administers address allocations, transfers and related registration services in the United States, Canada and parts of the Caribbean.
ARIN’s policies generally require an organization to demonstrate a need for address space. According to evidence described by the U.S. Department of Justice (DOJ), Golestan created 10 entities called “Channel Partners” after Micfo no longer qualified to obtain additional addresses directly. The entities allegedly used false representations, including fictional websites and employees, to appear legitimate and satisfy ARIN’s need-based requirements.
The rights were then sold on the secondary market. IPv4 supply had been exhausted at ARIN while demand and prices were rising, creating an opportunity to profit from transfers of address rights.
Quick wins for a faster PC:
Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →#1 Best Overall
How the case unfolded
| Date | Development | What it means |
|---|---|---|
| May 17, 2019 | CyberScoop reported the indictment and accusations against Golestan, then Micfo’s CEO. | The “million-dollar” framing described charging-stage allegations, not a final judgment. |
| November 18, 2021 | Micfo and Golestan pleaded guilty to all 20 wire-fraud counts without a plea agreement. | The defendants admitted criminal responsibility after the trial had begun. |
| September 20, 2023 | Golestan received a 60-month federal prison sentence, two years of supervision and a restitution order. | The criminal case reached sentencing; federal sentences do not include parole. |
What did prosecutors say the scheme generated?
The financial figures differ because they describe different stages and measurements of the case.
| Figure | Source and date | How to read it |
|---|---|---|
| More than 750,000 IPv4 addresses | CyberScoop’s 2019 report | A contemporaneous description of the address rights involved in the indictment. |
| $13 to $19 per address | CyberScoop’s 2019 report | An estimated per-address market value reported at the time; it is not a court-ordered valuation. |
| Approximately $3.5 million | DOJ account released in 2021 | The amount DOJ said Golestan pocketed. |
| Approximately $6.2 million | DOJ account released in 2021 | Additional proceeds DOJ said remained in escrow. |
| Tens of millions of dollars | DOJ description of the evidence | The later government account characterized the overall rights as having that value, a broader measure than cash pocketed. |
| $76,978.25 | DOJ sentencing announcement, September 2023 | The restitution ordered to ARIN. |
CyberScoop also reported that many of the addresses later appeared on a Spamhaus blocklist. That observation belongs to the 2019 reporting and should not be treated as a separate finding in the later sentencing announcement.
Did Amir Golestan plead guilty?
Yes. On November 18, 2021, Micfo and Golestan pleaded guilty to all 20 wire-fraud counts without a plea agreement. The pleas came mid-trial, after two days of proceedings and testimony from eight government witnesses.
The guilty pleas changed the status of the story from an indictment based on accusations to a resolved criminal case with admitted conduct and a later sentence. They also explain why a 2019 article about an alleged scheme should not be read as though the charges are still pending.
How much prison time did the Micfo CEO receive?
Golestan was sentenced on September 20, 2023, to 60 months—five years—in federal prison. The sentence includes two years of court-ordered supervision after imprisonment and $76,978.25 in restitution to ARIN. The sentencing announcement states that federal sentences do not include parole.
The available case announcements do not establish Golestan’s later custody location, whether the restitution has been paid, or the status of any appeal. Those details require newer court or official records.
Rank #4
Why IPv4 addresses became valuable
IPv4 uses a finite address space. As ARIN’s available pool was exhausted, organizations needing additional addresses increasingly looked to transfers and other secondary-market transactions. That scarcity made address rights financially valuable, but it did not remove the requirement that applicants meet ARIN’s allocation and transfer rules.
In this case, prosecutors said the Channel Partners were designed to create the appearance of independent, qualifying organizations. The alleged deception targeted the process ARIN used to determine whether an applicant had a legitimate need for address resources.
What the official statements said
John Curran, ARIN’s president and CEO, said: “Mr. Golestan’s scheme harmed ARIN and our community of Internet registry customers, and we hope that this outcome will send a clear message to any other parties contemplating fraudulent schemes to obtain or transfer Internet resources.”
Acting U.S. Attorney M. Rhett DeHart said: “Corporate and executive malfeasance can be difficult to detect and even harder to prosecute, and this case is an excellent example of the success we can achieve in spite of this difficulty when we work with our federal and agency partners.”
Quick Recap
What readers should take away
- The 2019 CyberScoop story covered indictment-stage allegations against Golestan.
- The alleged mechanism was the creation of 10 fictitious Channel Partners that used false information to obtain IPv4 address rights from ARIN.
- Golestan and Micfo later pleaded guilty to all 20 wire-fraud counts in November 2021.
- Golestan received a five-year federal sentence, two years of supervision and an ARIN restitution order in September 2023.
- The dollar figures in contemporaneous reporting, DOJ’s later proceeds account and the restitution order measure different things and should not be merged into one total.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
